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Invoice Factoring

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3 Step Process

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What Is Invoice Factoring?

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Invoice Factoring, also known as “Accounts Receivable Factoring” is the sale of a company’s unpaid invoices to a third party, the “factor.”  The Factoring Company, Allegiant Business Finance (the “factor”) provides an advance, which is an agreed-upon percentage of your invoices’ face value, at the time of purchase.  This advance helps generate immediate cash rather than waiting 30, 60 or even 90 days to get paid.

Selling your invoices helps your business establish and maintain stable cash flow without going through a cumbersome administrative process and frees you up to fulfill current orders, accept more orders, acquire new customers, open new markets…and keep money in your bank account on an ongoing basis, even if your company is a startup or a relatively new company. Companies who have been in business for years can also benefit, and are welcome, as well.

Benefits of Invoice Financing

  • Improved cash flow happens fast, once your account is established. We provide funding in 24 hours from the time of invoice submission.
  • Flexibility. you can select which invoices and/or customers you want to factor. While some factors require factoring all your invoices, we do not. With Allegiant you can sell whichever invoices you choose in order to maintain the steady cash flow you need.
  • Factoring can enable your business to give terms to customers you couldn’t before, which in turn leads to potential new markets and increased sales.
  • The application process is much shorter and includes fewer requirements than bank loans.
  • Read more on our blog, “10 Reasons to Factor Your Invoices“.
  • Even Shark Tank recognizes there is a time and a place for factoring your invoices:

Qualifications Required for Factoring Your Invoices

  • You must have a business that has invoices to business or government customers.
  • Your customers must be creditworthy and pay their bills dependably, usually in about 30-60 days (though this can vary).
  • Factored invoices must be verifiable and unencumbered (not used to meet other obligations).
  • You should not have serious tax arrearages, unresolved judgments, or liens with other financial companies such as banks.

Why Choose Allegiant?

  • Why Choose Allegiant?We fund companies nationwide with monthly invoice volumes of $30,000 to $3,000,000+.
  • We provide advance rates of up to 90% on gross billings, giving you immediate access to your invoice receipts long before your customers pay them.
  • We utilize a lockbox for receiving customer check payments, and accept ACH payments from your customers, for quick cash transactions.
  • We provide funding via Electronic Funds Transfer (EFT) so you don’t need to wait for a check.
  • We provide a “Proof of Funding” certificate, enabling you to accept large orders and RFPs.
  • We allow your sales force to say “YES” to large orders and profitable new business.
  • You get the lowest factoring cost and highest value for your invoices.
  • You select which invoices you want to factor (not all factors will allow this).

Summary

Sell Your InvoicesInvoice factoring is a great way to enable a business to grow. If you decide to sell your invoices, be sure you understand the discount rates, fees, any other charges, and procedures prior to starting. These are clearly spelled out in the contract; if you don’t understand at least these parts of what you’re signing, stop! Be as educated as you can about what you are doing, and about Allegiant, right from the beginning. If you have any questions, just ask! Make sure your questions are answered in terms you understand and that you are confident working with us will help your business.

Call us at 866.377.0800 to get the cash you need today by INVOICE FACTORING with Allegiant Business Finance.

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